B2B Startup Metrics | Startup School

Importance of Tracking Startup Metrics 📊 Founders often have great launches but have no idea about user retention or churn, highlighting the importance of tracking metrics for startup success. 🚀 Building basic metrics into a product before launch is crucial for success, as it shows command and understanding of the business. 📈 Founders should resist the temptation to change the definition of metrics when they don't meet expectations, as it's important to keep the definition consistent over time to accurately track improvement. 🔍 Being honest with investors about key metrics is crucial for identifying areas that need improvement. 💰 Revenue, burn rate, and Runway are crucial metrics for startups, and if they're not at the top of your investor updates, it may seem like the founder has something to hide. Impact of Retention and Churn on Startup Success 📊 Retention rate is a sign that people love your product and keep coming back and paying for it. 📉 The significance of retention became clear to me when I saw the potential of stacked monthly cohorts contributing to revenue even years later in a low churn business. 💧 Building a business with high churn is like pouring water into a leaky bucket, constantly scrambling to fill it up. 💰 Net dollar retention is a key metric for B2B SaaS companies, as it reflects the growth and stability of monthly recurring revenue over time. 💰 Understanding net dollar retention is crucial for tracking cohort growth and revenue changes over time in a startup.